NEW CBN REQUIREMENTS FOR BUREAU DE CHANGE OPERATIONS

The Central Bank of Nigeria (CBN), has revised the minimum capital requirement for Bureau De Change (BDC) operations from N10 million to N35million. This revision was made owing to what the CBN described as growing deficiencies in the operational effectiveness of BDCs which range from financing unauthorized transactions with foreign exchange procured from the CBN window to the depletion of the country’s foreign reserves and gradual dollarization of the economy. This mandatory cautionary deposit is to be deposited in a non-interest yielding account in the CBN. Furthermore, a new application fee of N100, 000.00, licensing fee ofN1million, and an annual fee of N250, 000 is now required for licensing BDCs and multiple ownership of BDCs by a single promoter is prohibited.

All existing BDCs and those currently operating with a final approval letter are expected to comply with the new mandatory cautionary deposit requirements by July 15, 2014.